Hodl, don’t trade, says the AI Bitcoin trading bot

When it comes to accumulating Bitcoins (BTC), “Hodling” is the best way. That’s what an artificial intelligence (AI), trading bot created by a Portuguese developer, concluded.

The trading experiment was created by Tiago Vasconcelos, a Bitcoiner. Vasconcelos created an AI trading bot to help him acquire more Bitcoin and improve his coding skills. It was almost unbelievable that the bot decided to trade Bitcoin instead of buying and holding it.

Vasconcelos is the founder of Aceita Bitcoin. This Portuguese organization promotes the adoption, education, and sharing information about Bitcoin. He is a keen Bitcoiner and also takes part in side projects related to Bitcoin.

Cointelegraph was told by him that it was a reinforcement-learning AI experiment. He went to get a truckload historical data from BTC/USDT. The code extracted and scraped daily price action between 2014 and 2021.

Vasconcelos “trained it or told him [the bot] how to operate the system. Here are the candles. You can buy, sell or do nothing.

The bot would receive one point for every successful trade. As a “punishment”, the bot will lose one point for every trade that is unsuccessful. The bot receives a reward for the total amount Bitcoin it has completed with.

The bot must get the highest score possible. He will make thousands/millions of attempts on this set of data to create a mental path to determine when it is best to buy or sell.

Screenshots of “figuring out that fewer trades works best!”

AI’s beauty is its ability to recognize patterns and make what Vasconcelos calls “moves”, which the bot uses to maximize its trading score.

“Eventually, the bot concludes that the best move is not to sell but to buy as soon and as often as possible!”

It’s clear that it’s not only the Bitcoin community and banks, but also the general public, who are crying “Hodl.” Even robots are hodlers.

Related: Bitcoin inactive supply closes to record, as more than 60% of BTC remains unspent for at most 1 year

Hodl is a well-known meme in Bitcoin. It originated from a Bitcointalk forum thread in 2013 from an inebriated contributor who mispelled hold. GameKyubi, the original commenter on the Bitcointalk forum post, decided to hodl because “I’m a bad trader” and “because I KNOW I’m a poor trader.”

It turns out that he may have been as intelligent as artificial intelligence.

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Eileen Wilson

Eileen Wilson –Technology and Energy My Name is Eileen Wilson with more than 5 years of experience in the Stock market industry, I am energetic about Technology news, started my career as an author then, later climbing my way up towards success into senior positions. I can consider myself as the backbone behind the success and growth of topmagazinewire.com with a dream to expand the reach out of the industry on a global scale. I am also a contributor and an editor of the Technology and Energy category. I experienced a critical analysis of companies and extracted the most noteworthy information for our vibrant investor network.

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